TPB handed out 162 compliance sanctions in 2025–26

In its annual report, the TPB noted that it published its enduring and current compliance priorities, with enduring priorities addressing risks such as fraud, professional standards, integrity, leadership, culture and governance, and unlawful registered preparer activity.

The TPB’s current focus is on emerging and higher-risk behaviours, including tax practitioner misconduct and unethical behaviour, illegal phoenix activity, tax avoidance schemes, shadow economy activity, overclaimed work-related expenses, exploitation of vulnerable Australians, and failures by practitioners to meet their personal tax obligations.

“Guided by these priorities, the TPB continued to apply a proportionate, fair and data-driven approach to compliance, focusing regulatory effort on conduct that posed the greatest risk to consumers, the tax profession and the integrity of the tax system,” the report said.

“This included taking decisive action where serious or repeated misconduct was identified, while using lower-level sanctions to support improved compliance where appropriate.”

The TPB also said that it contacted more than 32,000 clients of around 60 terminated tax practitioners during 2025–26 under its client support program to help affected clients understand their circumstances and take action where required.

In addition, it said that it provided practical guidance and education, with 10 new guidance products covering key topics including reasonable care, continuing professional education, and outsourcing arrangements.

TPB chair Peter de Cure said the body also worked with AUSTRAC to develop guidance supporting practitioners to understand and prepare for changes to Australia’s anti-money laundering and counter-terrorism financing regime.

“These resources, together with ongoing consultation with stakeholders and professional associations, help ensure that practitioners have access to clear, contemporary and practical guidance,” de Cure said.

Throughout 2025–26, the TPB said, it continued to target higher-risk behaviour and take action against tax practitioners who failed to meet their obligations.

“The TPB also maintained a strong focus on fair, proportionate and risk-based regulation. We do this by combining data-driven intelligence, targeted compliance activity, practical guidance and ongoing engagement with the profession and the community,” de Cure said.

As at 30 June 2026, there were 63,911 registered tax practitioners, including 47,064 tax agents and 16,847 BAS agents.

“Registered tax practitioners remain central to the administration of Australia’s tax system, helping individuals and businesses to navigate their obligations while maintaining confidence in the integrity of the system,” de Cure said.

He also said that the TPB enhanced digital services through the implementation of the Digital ID and improvements to the TPB register to provide more control to practitioners over the information displayed on their profiles and to improve the security and accessibility of services.

de Cure acknowledged the contribution of tax practitioners, professional associations, government agencies, and the broader community to the TPB’s work.

“We value our relationships with the tax profession, our partners and the community, and will continue to work together to promote high professional standards, address misconduct and support confidence in Australia’s tax system,” he said.

Legislation to arm the TPB with stronger regulatory powers and sanctions passed Parliament in September. The new law arms the TPB with powers to subject unregistered preparers to five criminal offences if they provide tax agent or business activity statement services for a fee, advertise tax agent and BAS services, or make a false representation of being a tax or BAS agent.

It also raises the maximum penalty amounts for all civil penalty provisions (including the new civil penalty provisions) from 250 penalty units for individuals to 2,500 penalty units, and from 1,250 penalty units for bodies corporate to 50,000 penalty units for bodies corporate and significant global entities (SGE).

The TPB released guidance on the new sanction powers shortly thereafter, with the board saying it will adopt “a proportionate and risk-based approach” to determining appropriate responses to misconduct under the enhanced sanctions framework.

The TPB said the changes to the sanctions framework target misconduct and non-compliance within the tax profession.